Standard Costing


Can someone please help me understand how AX revaluates item cost when standard cost/or Weighted average is used? i.e. what exactly happens in the background once an inventory close/recalc is run?

I understand what happens when DWAVG or FIFO is used but I dont really understand what happens when standard cost or weighted average is used.

Can someone please assist?



Hi Sahar

The difference between DWAVG and WAVG is that the following

When settling an issue against receipts, then in

DWAVG receipts are settled according to minimum average qty against earlier receipts than the issue
WAVG in this case receipts after the issue date will also be taken into the calculation

Minimum average Qty = 0,01

Date Receipts/issues WAVG DWAVG
Issue value/settled qty Issue value/settled qty

01-jan 1 1/13 1/3
02-jan 2 2/13 2/3
03-jan -1 26,92 16,67
04-jan 10 10/13
31-jan Close/recalc

Standard cost is calculated upon financial receipt and the adjustment between the std cost price on the item sheet and the receipt cost price is posted into variance account.

Remember that the procedures for a lot of pocesses ex credit notes, counting etc are different from cost principle to cost princilpe.